As the 31st January self-assessment deadline approaches, self employed property professionals and landlords need to prioritise filing their tax returns without delay. Should they miss this date, they could face a penalty of £100, even if they don’t owe any tax. The longer they continue to delay, the more likely they are to be penalised with further fines

Making Tax Digital

HMRC is preparing for the introduction of mandatory Making Tax Digital for Income Tax on 6 April 2026. This means landlords who earn above the tax threshold will need to maintain digital records and use compatible software to submit their quarterly updates. Smaller landlords still reliant on paper records and annual summaries may find it difficult to accommodate the shift.

HMRC is also intensifying its compliance programme, reporting a record £48 billion in additional revenue in 2024/25 through its enforcement activities. This illustrates the growing importance of accuracy, transparency and prompt filing across the sector.

Help and Advice

Anyone affected by the changes can find guidance on the HMRC website or consult their accountant, if they have one. They should be able to advise on best practice, whether they’re a large firm in a major business hub or a local firm of Exeter, Blackpool or Gloucester accountants, such as randall-payne.co.uk/services/accountancy/gloucester-accountants/.

The industry body Propertymark has warned that awareness of these significant tax changes is patchy, especially among landlords with small portfolios. At the same time, the imminent rental reforms under the Renters’ Rights Act 2025 will add further to the burden on landlords. Effective tax management has never been more crucial.